Peters, Stabenow Urge Department of Defense to Explore Efforts to Reduce Prescription Drug Costs in TRICARE

Press Release

U.S. Senators Gary Peters (D-MI) and Debbie Stabenow (D-MI) sent a letter to Secretary of Defense James Mattis asking him for timely consideration of a pilot program to improve access and reduce the costs of prescription drugs in the TRICARE program, which serves active duty military personnel, National Guard, reservists, retired servicemembers and their families.

"We believe the TRICARE Acquisition Cost Parity Pilot Program for Retail Pharmacy is a sensible approach to reducing prescription drug costs in the TRICARE program," the senators wrote in the letter. "Because the FY2017 NDAA requires the pilot to begin on October 1, 2017, we urge you to act quickly to consider the pilot program. In addition to reducing costs to the TRICARE program, this pilot will help small businesses contribute back to their local economies and will help to sustain the pharmacy benefit upon which our deserving military veterans and families rely."

Currently, all TRICARE beneficiaries must get non-generic medications from a military treatment facility (MTF) or through mail order, but have no option to visit a pharmacy in person. The pilot program, which was established in the National Defense Authorization Act (NDAA) for Fiscal Year 2017, will allow beneficiaries to get their medications from local pharmacies while preserving access through the existing MTF and mail order systems, and reduce costs by allowing the Department of Defense to purchase non-generic medications at the same lower rate it pays for drugs dispensed through the mail or MTFs.

The pilot will also provide additional options for the families of retired servicemembers, National Guard members and reservists who may not live near an MTF to visit a pharmacy in person to purchase their medications. There are more than 97,000 TRICARE beneficiaries living in Michigan, but there are no military treatment facilities in the state.

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